Lee’s Sandwiches FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered is for the establishment and operation of an independently owned and operated business, which may be either a “Baguette Factory Production Unit” or a “Production Unit” offering the full line of Lee’s Sandwiches products and producing the dough for baguettes and supplying the needs of other Lee’s Sandwiches businesses; or a “Non-Production Unit” also offering the full line of Lee’s Sandwiches products but within a strip mall or smaller, freestanding location or mall applications such as food court areas with common seating and not offering baguette production.
Corporate Information
Lee’s Sandwiches International, Inc. was incorporated in California on June 11, 2002. Their principal business address is 660 E. Gish Road, San Jose, California 95112. They have offered franchises since August 19, 2004.
Investment
In addition to three types of franchised businesses, the franchisor also offers two types of franchise programs:
A single franchised business. The total investment necessary to begin operation of a Lee’s Sandwiches Baguette Factory Production Unit franchised business is $988,000 to $1,679,500. This includes $95,000 to $115,000 that must be paid to the franchisor and their affiliates. The total investment necessary to begin operation of a Lee’s Sandwiches Production Unit franchised business ranges from $544,000 to $1,174,000. This includes $75,000 to $90,000 that must be paid to the franchisor and their affiliates. The total investment necessary to begin operation of a Lee’s Sandwiches Non-Production Unit franchised business ranges from $209,830 to $800,870. This includes $55,000 to $70,000 that must be paid to the franchisor and their affiliates.
Multiple franchised businesses. The initial franchise fees described above are discounted by 20% for multiple unit developers. You are required to sign one Franchise Agreement and pay the applicable franchise fee for the first franchised business at the same time you sign the Development Agreement. You also must pay the franchisor the development fee, which ranges from $20,000 (to develop 2 Non-Production Units) to $184,000 (to develop 1 Baguette Factory Production Unit, 1 Production Unit and 8 Non-Production Units) or higher to develop more than 10 units. The total investment necessary to begin operation of multiple franchised business ranges from $220,890 to $2,007,560 (or more depending on the number and types of units to be developed).
